STOXX LIVE MARKETS flat in thin trade


December 24 – Welcome home for real-time market coverage presented by Reuters reporters. You can share your thoughts with us at [email protected]

STOXX DISH IN THIN COMMERCE (0855 GMT)

European stocks are hovering around the floating line, with only a few stock markets open for half a day on Christmas Eve, including London, Paris and Amsterdam.

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The STOXX 600 Index (.STOXX) is flat with all sectors within a narrow range. The travel and leisure stock index (.SXTP) is up 0.3% after yesterday’s rally.

Promising developments around the Omicron variant have boosted risk sentiment this week, but great uncertainty still surrounds future pandemic trajectories.

It was not very reassuring to the global economy and the supply chain that the increase in COVID-19 infections in the Chinese city of Xian resulted in the lockdown of its 13 million residents, with several companies claiming that their operations have been affected.

On the flip side, central banks will decrease their monetary stimulus in 2022, but that doesn’t seem to bother real rates which remain well in negative territory in the US and Europe, stimulating appetite for equities.

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(Stefano Rebaudo)

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WHAT WORKED AND WHAT DIDN’T (0828 GMT)

How many investment calls made a year ago have kept their promises? As usual every year, some asset classes have stubbornly refused to do what they were told.

Take the dollar. Around the same time last year, shorting the dollar was the most “crowded” transaction, BofA said, citing its monthly survey of fund managers. Some have pointed out in the past how his particular poll acted as a contrarian indicator, but this one was particularly spectacular; the dollar index is up 7% this year. No central bank can ‘beat’ the Fed, we were told, but of course, many have.

The other that went wrong was emerging markets; Expecting trade, tourism and commodity prices to rebound alongside the weak dollar, Morgan Stanley told clients a year ago, “Gotta Buy EM All! “

Hopefully they haven’t. Emerging currency debt fell 9% and stocks are down 6%. These index moves contain a few gems of course (look at 20% gains for Indian stocks and a 15% rise for frontier stocks) but also unfortunately … a few turkeys.

Even after a few unorthodox measures taken by the administration to repair the damage, the lira remains down by more than 50% on the year.

The bet on commodities and oil worked, however, as did American technology, the freebie that continued to be offered – despite all threats of additional fines for monopoly behavior, higher taxes and challenges for small businesses. technology companies, the US Nasdaq index rose 26%.

And semiconductor makers – dubbed the new oil by some – are up 40% (.SOX), not too far from Brent’s 45% rebound.

(Sujata Rao)

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DECLINE IN EUROPEAN SCHOLARSHIPS ON CHRISTMAS EVE (07:19 GMT)

European stocks are expected to ease slightly after rising this week as the Omicron variant is not expected to derail the economic recovery, although activity is expected to remain limited as most spot markets and derivatives are either closed or open for half a day.

Some analysts argue that the recent low volume “risk appetite” seen the week before Christmas may have a finite life in 2022 as central banks cut back on monetary stimulus.

In Europe, London and Paris will close around noon today, while Frankfurt, Milan and Madrid are closed. UK and France stock futures fell 0.3% and 0.1% respectively.

Yesterday’s US data also reminds investors that the economy is strong, as PCE – the Fed’s preferred measure of inflation – rose 4.7% in November, setting its largest year-on-year increase. since February 1989.

(Stefano Rebaudo)

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